If you’re dealing with a net operating loss (NOL) or other qualifying tax overpayments, IRS Form 1045 could help you secure a quick refund without the hassle of amending multiple returns. This form, officially known as the Application for Tentative Refund, allows eligible taxpayers to carry back losses or credits to prior years and receive a “tentative” refund faster than traditional methods. In this comprehensive guide, we’ll cover everything you need to know about Form 1045, including eligibility, filing instructions, deadlines, and recent updates for tax year 2025 and beyond. Whether you’re an individual, estate, or trust, understanding how to use this form can optimize your tax strategy and improve cash flow.
For the latest official form, download the PDF directly from the IRS website: https://www.irs.gov/pub/irs-pdf/f1045.pdf.
What Is IRS Form 1045?
IRS Form 1045 is a specialized tax document designed for individuals, estates, and trusts to request a rapid refund based on specific carrybacks or adjustments. It enables you to apply losses or unused credits from a current tax year to previous years’ returns, effectively reducing your tax liability in those earlier periods and generating an overpayment refund.
The primary purposes of Form 1045 include:
- Carryback of a net operating loss (NOL).
- Carryback of an unused general business credit.
- Carryback of a net section 1256 contracts loss (related to futures and options trading).
- Overpayment due to a claim of right adjustment under section 1341(b)(1), where income previously reported must be repaid.
Unlike amending returns with Form 1040-X, which can take months, Form 1045 is processed as a “tentative” application, meaning the IRS aims to issue refunds quickly—typically within 90 days—while reserving the right to audit and adjust later. This makes it an efficient tool for businesses or individuals facing financial setbacks, such as those from economic downturns or unexpected losses.
Note that corporations cannot use Form 1045; they must file Form 1139 instead.
Who Can File Form 1045 and Eligibility Requirements?
Form 1045 is available to:
- Individuals (including sole proprietors).
- Estates.
- Trusts (including tax-exempt trusts filing Form 990-T, with specific guidelines).
To qualify, you must have one of the following in the tax year you’re filing from:
- A net operating loss (NOL), calculated using Form 172. Special rules apply for farming losses, which can be carried back up to 2 years (the smaller of the farming NOL or total NOL).
- An unused general business credit (e.g., from Form 3800).
- A net loss from section 1256 contracts (futures, options, or straddles; attach Form 6781).
- An overpayment under section 1341(b)(1) for repaid income previously taxed.
Important eligibility notes:
- Non-farming NOLs generally cannot be carried back and must be carried forward.
- If your filing status or marital status changed between the loss year and carryback years (e.g., from married filing jointly to separately), you must attach allocation schedules from Form 172.
- Carrybacks to years with section 965(a) inclusions (related to foreign income) require amended returns instead of Form 1045.
- Alternative minimum tax (AMT) may arise or change due to the carryback; recompute using Form 6251.
If you’re unsure about eligibility, consult the IRS instructions or a tax professional, as improper filing could delay your refund or trigger audits.
How to File IRS Form 1045: Step-by-Step Instructions?
Filing Form 1045 involves recomputing your taxes for the carryback years. Here’s a streamlined guide based on official IRS instructions:
- Gather Documentation: Collect your tax returns for the loss/credit year and all carryback years. Include Forms 1040/1040-SR (pages 1-3, Schedules 1-3, A, D, F, J), Form 1041 for estates/trusts, Form 172 for NOL calculation, and any relevant credit forms like Form 3800 or 6781.
- Complete the Form Header: Enter your name, SSN or EIN, address, and the tax year of the NOL/credit. Check the box on line 2c if this is a resubmission in response to IRS correspondence (new for 2025).
- Enter Carryback Details (Lines 1a-1d): Specify the amount of NOL (line 1a), unused credit (1b with attached computation), section 1256 loss (1c), or claim of right adjustment (1d).
- Recompute for Each Carryback Year (Lines 10-32): Use paired columns (before and after carryback) starting with the earliest year. Refigure:
- Adjusted gross income (AGI) on line 11, accounting for limits like passive losses.
- Deductions, exemptions (line 14), taxable income (line 15), income tax (line 16).
- AMT (line 18 via Form 6251), credits (lines 20-22), self-employment tax (line 25, no change), Additional Medicare Tax (line 26, no change), Net Investment Income Tax (line 27 via Form 8960).
- The difference on line 32 shows the tax decrease per year.
- Claim of Right Adjustment (Line 33): If applicable, enter the overpayment and attach a computation per regulations.
- Request Refund (Line 34): Opt for direct deposit (now encouraged per Executive Order 14247; paper checks are being phased out).
- Sign and Attach: Both spouses sign for joint filings. Attach all required forms, schedules, and election statements. For e-filing, use new Form 8453-TR.
Mail to the IRS service center for your location, or e-file if eligible. Do not file Form 1045 before submitting your current year’s tax return.
Filing Deadlines for Form 1045
You must file Form 1045 within 1 year after the end of the tax year in which the NOL, credit, loss, or adjustment arose. For example, a 2025 NOL must be claimed by December 31, 2026. Extensions may apply for federally declared disasters. Processing typically takes up to 90 days from the later of your filing date or the due date of your current return (including extensions).
Required Attachments and Documentation
To avoid delays, attach:
- Copies of your full tax return for the loss year.
- Form 172 for NOL details.
- Recomputed forms for carryback years (e.g., Form 6251, 8960, 3800).
- Schedules for credits, losses, or status changes.
- Form 8302 for large refunds ($1 million+).
Incomplete applications may be rejected or require resubmission.
Recent Updates for Tax Years 2025 and 2026
As of February 2026, key changes include:
- New line 2c for resubmitting applications in response to IRS letters—attach only requested items.
- Emphasis on direct deposit and e-filing with Form 8453-TR.
- No major structural changes to Form 1045 itself, but Schedules A and B were removed starting in 2024 (use Form 172 instead for NOL computations).
- Continued restrictions on non-farming NOL carrybacks.
Always check IRS.gov for the latest developments, as legislation could impact carryback rules.
Conclusion: Maximize Your Refund with Form 1045
IRS Form 1045 offers a streamlined path to tentative refunds for qualifying losses and credits, helping you recover overpaid taxes efficiently. By following the eligibility criteria and filing instructions outlined here, you can navigate the process with confidence. Remember, while this form accelerates refunds, it’s subject to IRS review—consult a tax advisor for complex situations to ensure compliance and optimize your outcome.
For more details, visit the official IRS page on Form 1045 or download the instructions PDF at https://www.irs.gov/pub/irs-pdf/i1045.pdf. Stay informed on tax changes to make the most of available relief options in 2026.